25/07/2025, 10:46 BYD and Tesla’s entry in Indian EV market - Diversify your EV portfolio from batteries to semiconductors: Raunak
ors: Raunak Onkar - The…
English Edition | 25 July, 2025, 10:37 AM IST | Today's ePaper
BYD and Tesla’s entry in Indian EV market -
Diversify your EV portfolio from batteries to
semiconductors: Raunak Onkar
ETMarkets.com Last Updated: Feb 21, 2025, 10:14:00 AM IST
Synopsis
The Indian EV market is poised for transformation with BYD and Tesla's entry, raising consumer expectations and introducing new design
standards. These global giants will likely create new price segments and drive innovation in sales models, offering Indian consumers
premium choices and a direct-to-customer buying experience.
TIL Creatives
The Indian electric vehicle (EV) market is on the brink of a paradigm shift as global giants
BYD and Tesla make their way into the country.
These international players are set to redefine consumer expectations by introducing new
design standards, premium features, and innovative sales models that challenge the status
These international players are set quo of the Indian EV landscape.
to redefine consumer
expectations by introducing new
design standards, premium
features, and innovative sales
models that challenge the status
quo of the Indian EV landscape.
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Redefining Consumer Expectations
In an interview with ETNow Raunak Onkar, Co-Fund Manager and Head of Research at PPFAS Mutual Fund, believes
that the entry of BYD and Tesla will reshape the way Indian consumers perceive electric vehicles. "We should welcome
some different kind of competition because that creates a different ladder in the customer's mind to what product they
want," said Onkar, emphasizing that new entrants elevate consumer choices and expectations.
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25/07/2025, 10:46 BYD and Tesla’s entry in Indian EV market - Diversify your EV portfolio from batteries to semiconductors: Raunak Onkar - The…
Before BYD entered the Indian market, EV designs in India were functional yet lacked international appeal. In contrast,
BYD's popularity in China and Tesla's global success are largely due to their futuristic designs, cutting-edge technology,
and superior build quality. Onkar noted, "If some new designs, some new standards, and new expectations are built into
the product, then at least customers have a ladder of price where they can choose... If you want a global standard, you
want to pay up a little bit extra for different kinds of features, then you buy a car like Tesla or a BYD."
Price Points and Market Segmentation
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One of the most significant impacts of BYD and Tesla's entry will be the creation of new price segments within the
Indian EV market. Currently, the Indian EV space is dominated by mid-to-lower range models designed to meet cost-
conscious consumer demand. However, BYD and Tesla are likely to cater to a more premium market segment.
Onkar elaborated, "It will be at a slightly higher price point compared to what EVs are generally sold in India today. And
there has always been a market for that." He further argued that the introduction of high-end EVs would not necessarily
cannibalize the existing market. Instead, it would offer more choices and better value propositions to Indian consumers,
who can now decide whether to go for budget-friendly models or premium, globally recognized brands.
Innovative Sales and Distribution Models
Another key area where BYD and Tesla are expected to bring change is the sales and distribution model. Unlike
traditional car manufacturers in India that rely on dealer networks, Tesla is known for its direct-to-customer sales model
in many developed markets. This approach could disrupt the traditional dealership framework and introduce a more
streamlined and consumer-friendly buying process.
Onkar emphasized the potential impact, saying, "If you have a distribution model, if you have a sales model, which is
direct-to-customer, it is also innovative. We will see how that also evolves the way cars are sold in India."
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25/07/2025, 10:46 BYD and Tesla’s entry in Indian EV market - Diversify your EV portfolio from batteries to semiconductors: Raunak Onkar - The…
Building an EV Portfolio:
The EV market is still in its nascent stage, and the transition from internal combustion engines (ICE) to EVs will be
gradual. According to Onkar, “Companies might look very different five-seven years out... as long as that volume [of EVs] is
growing gradually, you will see that transition happen within incumbents as well.”
“It will over a period of time become better and more clear, but all of the above, the component makers, the incumbents,
the EV only companies, all of these battery manufacturers, semiconductor companies, all of these should be part of that
EV portfolio if you want to build,” highlighted Onkar.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent
the views of the Economic Times)
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